Eversheds Sutherland Observation: Taxpayers that have begun or are in the process of beginning construction on facilities in 2020 may want to quickly consider opportunities to shift to a 2021 (or later) beginning of construction date if helpful to have additional time available to satisfy the continuity safe harbor.
Under existing law, the PTC (and ITC in lieu of PTC) is not available for the following facilities if construction begins after December 31, 2020. Under the Extenders Bill, the 100% PTC (and ITC in lieu of PTC) would be available for these facilities if construction begins by December 31, 2021.
closed-loop biomass facilities,
10%
Offshore wind facilities are separately addressed in the Extenders Bill. The bill would add new rules applicable to offshore wind facilities that provide for a 30% ITC for offshore wind facilities on which construction begins before 2026. A qualified offshore wind facility is defined as a qualified wind facility as described in section 45(d)(1) that is located in the inland navigable waters or coastal waters of the United States.